Volvo has offloaded its combustion-engine improvement and manufacturing to a Geely three way partnership … [+]
ASSOCIATED PRESS
Volvo Vehicles has shoved its carbon-emitting engine enterprise off its books by transferring all of its internal-combustion powertrains to a brand new joint-venture firm known as Aurobay.
A creation of Volvo and its Zhejiang Geely Holding Group father or mother, the Aurobay three way partnership means there are not any extra combustion engines throughout the Volvo Vehicles Group, with the carmaker protecting solely its electrical powertrains on its stability sheet.
The transfer leaves Volvo free to develop and produce electrical powertrains, whereas Aurobay delivers the combustion energy it might want to bridge throughout to 2030, when Volvo plans to be all electrical.
It expects half of its vehicles to be electrical by 2025, and Aurobay will provide the hybrid powertrains that may flesh out the opposite half. EVs made up simply over 10% of Volvo’s gross sales final 12 months.
“The brand new stand-alone enterprise additionally has the ambition to provide clients outdoors of the Geely Holding Group, and goals to be a number one participant within the provide of high-quality, low emissions, cost-efficient powertrain options,” Volvo mentioned in an announcement.
It should take a month to merge combustion powertrain operations from as far afield as Volvo’s Powertrain Engineering division and Skövde engine plant in Sweden, with Geely’s engine crops in China.
Aurobay will proceed to develop powertrains for Volvo, Geely, Proton and different manufacturers, with out Volvo having to account for any of the combustion engines by itself stability sheet.
There may be speak of Aurobay supplying automakers that aren’t linked to Geely.
